The financial technology firm Klarna has revealed that its strategic focus on artificial intelligence has enabled a dramatic reduction in its workforce while simultaneously boosting pay for remaining employees. Company leadership confirmed that headcount has been nearly halved over a three-year period, dropping from over 5,500 to approximately 2,900 positions.
This workforce reduction occurred primarily through natural attrition rather than widespread layoffs, with departing staff members being replaced by automated systems rather than new hires. The company’s AI initiatives have expanded to perform work equivalent to more than 850 full-time employees, representing a significant increase from earlier this year.
Despite the substantial decrease in personnel, the company reported that average employee compensation has surged by approximately 60% during this same period. This compensation increase includes salary, benefits, and associated employment costs, bringing the average package to around $203,000 annually.
Company executives emphasized that efficiency gains from automation are being partially redirected to employee compensation, creating alignment between staff and investors in driving technological transformation. The firm’s revenue per employee has reached $1.1 million, a metric leadership hopes to continue improving in coming years.
The technology-driven operational changes have allowed the company to achieve substantial revenue growth while maintaining stable operating costs, a combination described as exceptional in the business sector. Leadership indicated that further workforce optimization may occur as artificial intelligence capabilities continue to advance.
Recent financial results showed strong revenue performance that exceeded market expectations, though the company reported increased losses primarily attributed to accounting standard changes following its public listing in the United States.
